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The Time Has Come! When and How to Prepare a Liability Medicare Set Aside (LMSA)

The Medicare Set Aside (MSA) program began in 1980, years before the July 23, 2001 “Patel” memo which described the criteria for Workers Compensation Medicare Set Asides (WCMSAs). Since that time, the Centers for Medicare and Medicaid Services (CMS) has infrequently and inconsistently discussed Liability Medicare Set Asides (LMSAs) and No-Fault Medicare Set Asides (NFMSAs) but has delayed setting forth any guidance for Liability claims payers. The reason is because the obligation for future medical care arises by statute in a workers’ compensation claim, but in general, auto, no fault liability or 3rd party cases, the duty arises from the release. For instance, the typical liability case

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